The following article was a contribution to Tess Pennington’s 52 Weeks to Preparedness weekly newsletter.
With some 403,000 Americans losing their jobless benefits in just the last few weeks, considering some alternative investment strategies may be in order. While traditional stock, bond and cash investments still have a place in today’s economy, so too do strategies that your financial adviser would not only never recommend, but never even contemplate as “investments.” For those who have lost their jobs and unemployment benefits to boot, the S has already hit the fan. The safety net on which millions have come to depend, for all intents and purposes, is progressively being torn to shreds. Unemployment assistance is no longer sufficient because there are no jobs to make up for those that have been lost, so eventually everyone will run out of these benefits and be left to fend for themselves. That’s tens of millions of people that will have no way of paying their mortgage, their credit card payments, car loans, students loans, monthly utility bills and, most importantly, food (because let’s be honest, $400 in nutritional assistance per month just isn’t going to cut it).
We hate to say it, but had those individuals taken preventative investment and preparedness measures several years ago, when we first recommended our physical commodity investment strategy, they would at least have been able to alleviate some of the pain they are experiencing today – especially the pain in their bellies.
In the following article we touch on this strategy, as well as several others that, while not a silver bullet, can at least provide some insulation in case the worst comes to pass. While we certainly want to make every effort to prepare for the mass collapse of a paradigm that is simply unsustainable, the most likely scenario we’ll face is one that may not necessarily affect the entire nation all at once, but rather, crushes individuals one at a time through the elimination of their income, rising prices and the ability to maintain a decent standard of living.
We can pretend, as President Obama suggested in last year’s State of the Union, that we have avoided a Great Depression and boom times are dead ahead, or we can look around, see what’s actually happening, and understand that none of us are immune from the economic destruction to come. The consequences for not preparing will be brutal.
Collapse Investing: Money and Wealth Preservation During Times of Uncertainty and Instability
We could spend a significant portion of our time outlining the various reasons for why the world’s economic, financial and political systems sit on the brink of an unprecedented paradigm shift that promises to change the landscape of the entire system as it exists today.
I could try to convince you that it’s a good idea to prepare for what’s coming, but the fact that you are reading this article via Tess’ Ready Nutrition newsletter means that you’re already in action planning and execution mode. If you’ve been following the 52 Weeks to Preparedness from the beginning, then you’ve spent the last 44 weeks establishing an emergency and disaster response plan that would probably make FEMA jealous.
Like Tess and I, you’ve probably done your research and spent months or years gathering as much information as you can about the many possibilities that could significantly impact your life and the lives of your family members and close friends, and you’ve actively involved yourself in making sure that you’re as insulated as possible from whatever may befall us.
My initial inclination when Tess asked me to contribute some thoughts on wealth preservation during times of uncertainty was to point out the fundamental economic problems and fraud facing the system. I realized after delving into this topic that, while the ramifications of an economic or currency collapse are life alteringly severe, my family’s personal preparedness plans have always been focused on ensuring we’re ready for anything that gets thrown our way – not just an economic crisis.
The strategy that we try to employ is well rounded and considers as many variables as possible.
- Natural Disasters such as hurricanes, earthquakes, flood, solar flare
- Man-made calamities like currency hyperinflation, cyber attack, EMP detonation, nuclear fallout or global conflict
- Personal emergencies like a job loss, injury or over-extension of credit
With this idea in mind, when we look at the concept of investing and wealth preservation for uncertain times, we want to employ a strategy that will provide as much coverage as possible so that if we are hit out of the blue with something totally unexpected, we’ll at least have the basic necessities to survive.
While I’ll stop short of advising you to sell all of the stocks and bonds in your 401(k) account and investing all of your proceeds into ‘preps’, a little diversification could mean the difference between surviving a disaster, or succumbing to it.
Keep your 401(k), IRA or other investment accounts, but consider expanding your horizons with a new 401(Prep) strategy as well.